What is D&O Insurance?
D&O Insurance is a legal defence insurance policy that provides a company with the financial assistance to fund the defence of it's directors and managers should they be litigated against or receive formal investigation over the way in which they ran the company.
Most company's articles of association undertake to use their assets to protect a director and the insurance policy provides important balance sheet protection. If a company had no D&O insurance then it would need to fund the defence from cashflow and if it had no assets then the director would be left to fund their own defence form personal resources.